Short answer: a quitclaim deed transfers whatever ownership interest the grantor has in a property, without any promise that the title is good. In New York it is used mainly between people who already know the ownership situation: spouses in a divorce, family members, or an owner moving property into their own LLC. It is not used in ordinary sales, and it does not remove anyone from a mortgage.
People sometimes call it a “quick claim” deed, and it is quick to prepare. But a quitclaim deed still has to be acknowledged, accompanied by transfer tax returns and recorded, and it can carry tax and mortgage consequences that are easy to miss. This guide explains when a quitclaim deed makes sense in New York, how the process works, and what to check before signing one.
Quitclaim Deed vs. Bargain and Sale Deed
| Quitclaim deed | Bargain and sale deed with covenants | |
|---|---|---|
| Promise about title | None: transfers only whatever interest the grantor has | Grantor has not encumbered the title while owning it |
| Common uses | Divorce, adding or removing a family member, moving property into an LLC you own, clearing a cloud on title | Standard deed in New York residential sales |
| Protection for the new owner | Lowest | Moderate, usually paired with title insurance |
| Used in arm’s-length sales? | Almost never | Yes |
For a full comparison including warranty deeds and executor’s deeds, see our guide to property deed transfers in New York.
When to Use a Quitclaim Deed in New York
- Divorce. One spouse transfers their interest to the other under the divorce settlement or judgment.
- Adding or removing a family member. For example, a parent adds an adult child to title, or a relative who no longer lives in the home releases their interest.
- Moving property into an entity you control. An owner transfers a rental property into their own LLC (check the mortgage first; lenders often object).
- Clearing a cloud on title. Someone who may have a claim, such as a former co-owner, releases it so the property can be sold or refinanced.
- Correcting ownership. Fixing how owners are listed, such as changing how co-owners hold title.
Quitclaim Deeds in a New York Divorce
The most common use of a quitclaim deed is carrying out a divorce settlement in which one spouse keeps the home. The departing spouse signs a deed transferring their interest, usually once the settlement agreement is signed or the judgment is entered.
The deed changes ownership only. If both spouses signed the mortgage, both remain liable to the lender until the loan is refinanced into the remaining spouse’s name or the lender agrees to release the departing spouse. Settlement agreements should therefore say when the refinance must happen and what happens if it does not. Federal law generally prevents a lender from calling a residential loan due just because one spouse transfers their interest to the other under a divorce (12 U.S.C. §1701j-3(d)), but that protection does not release the departing spouse from the debt.
Transfer tax treatment of transfers between spouses and transfers made under a divorce judgment or settlement depends on the facts, including whether a mortgage remains on the property. Confirm the tax position before the deed is recorded. Our family law and real estate attorneys often coordinate on these transfers.
How to Transfer Property With a Quitclaim Deed in New York
| Step | What happens |
|---|---|
| 1. Confirm the goal and the risks | Check the mortgage, any title insurance policy, property tax exemptions and the tax consequences before drafting anything. |
| 2. Prepare the deed | The deed names the grantor and grantee, includes the full legal description from the current deed, and states the consideration. |
| 3. Sign and acknowledge | The grantor signs before a notary using a New York acknowledgment form (Real Property Law §309-a). |
| 4. Prepare the transfer tax returns | The NYS TP-584 is filed for every deed; in NYC the NYC Real Property Transfer Tax return is also filed, through ACRIS. Returns are required even when no tax is due. |
| 5. File the RP-5217 | The real property transfer report accompanies the deed (in NYC, the RP-5217NYC through ACRIS). |
| 6. Record the deed | Record with the county clerk, or in NYC with the City Register, and pay the recording fees and any tax due. The new owner receives the recorded deed back. |
Taxes and Costs to Check First
- Transfer taxes. NYS and NYC transfer taxes are based on consideration, and the unpaid balance of a mortgage that stays on the property can count as consideration even when no money changes hands. A “free” transfer of mortgaged property can therefore be taxable. See our NYC & NYS transfer tax guide (Tax Law Article 31; NYC Admin. Code Title 11, Ch. 21).
- Federal gift tax reporting. Giving someone an interest in real estate for less than its value can be a taxable gift. Most people owe no gift tax, but a gift above the annual exclusion generally requires a federal gift tax return (Form 709).
- Capital gains basis. A person who receives property as a gift generally takes over the giver’s tax basis, which can mean a larger capital gains tax later compared with inheriting the property. Talk to a tax adviser before gifting a home that has appreciated.
- Property tax exemptions. STAR, senior and veteran exemptions are tied to specific owners and can be lost when title changes.
- Recording and filing fees. County or City Register recording fees and the RP-5217 filing fee apply to every recorded deed.
Risks of Using a Quitclaim Deed
- The person receiving the deed gets no guarantee that the grantor actually owned anything, or owned it free of liens.
- A quitclaim deed does not remove the grantor from the mortgage, and some transfers can trigger the loan’s due-on-sale clause.
- An existing owner’s title insurance policy may not protect the new owner after the transfer.
- Once recorded, the transfer generally cannot be undone without the new owner’s cooperation.
Transferring property within a family or after a divorce? Our NYC real estate attorney team prepares the deed and transfer tax filings, checks the mortgage and tax consequences, and records the deed, in all five boroughs, Westchester, Long Island and New Jersey.
Frequently Asked Questions
What is a quitclaim deed in New York?
A quitclaim deed transfers whatever interest the grantor has in a property, without any promise that the title is valid or free of liens. New York uses quitclaim deeds mainly for transfers between spouses, family members or co-owners, not for ordinary sales.
Can I use a quitclaim deed to remove my ex-spouse from the title?
Yes. The departing spouse signs a quitclaim (or bargain and sale) deed transferring their interest, usually as required by the divorce settlement or judgment. The deed does not remove them from the mortgage; that requires a refinance or the lender’s written release.
Does a quitclaim deed remove my name from the mortgage?
No. The deed transfers ownership, but the mortgage is a separate loan. You stay liable to the lender until the loan is paid off, refinanced or the lender formally releases you.
Do I pay transfer tax on a quitclaim deed in New York?
It depends on the consideration. Transfer taxes are based on the consideration for the transfer, which can include the unpaid balance of a mortgage that stays on the property. Some transfers owe no tax, but the NYS TP-584 (and in NYC the RPT return) must be filed either way.
Does a quitclaim deed need to be notarized in New York?
Yes. The grantor’s signature must be acknowledged before a notary (or other authorized officer) for the deed to be recorded in New York.
How long does it take to record a quitclaim deed in NYC?
Once the deed is signed and the ACRIS filings are prepared, recording is usually straightforward. Most of the time goes into confirming the mortgage, tax and title questions before the deed is signed.
Need a Quitclaim Deed Prepared?
Our real estate attorneys prepare and record deeds and handle the transfer tax filings in New York and New Jersey. Schedule a free consultation.
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